While this is certainly Apple's right to do, this is one of the reasons why, in the long run, Apple's rather arbitrary app store policies are going to backfire. Developers are increasingly getting pissed off, or worried that Apple might suddenly pull the rug out from under them, with little explanation and barely any recourse. That's not an environment that appeals to developers in the long run. Yes, given the size of the iPhone (and soon iPad) market, plenty of development will continue. But in the long run, some of the more innovative and valuable apps will appear on other, more open platforms first, and make those platforms more appealing.